Employee Choice
Let your employees decide whether employer-matched contributions go to retirement savings, student loan repayment, or both – all without adjusting your benefits budget.
Benefits of Partnering with BenefitEd
Gain an Edge When Employees Choose
In recruitment and retention, benefits matter – so let employees choose. Employer-matched funds can be directed to student loans, retirement plan, or a combination – whatever best fits the employee’s financial goals.
Adaptable to Your Retirement Plan
Whether you offer a 401(k) or 403(b), Employee Choice is compatible with it. Since student loan repayment is separate from your retirement plan, you shouldn’t even need to update or modify your Retirement Summary Plan Document (SPD).
Offer Student Loan Repayment Without Benefit Increase
Offering a benefit to help your employees pay off their student loans is a smart recruitment and retention strategy. Employee Choice allows you to do this without a significant increase to your employee benefits budget.
Reduce Administrative Hassle
Your assigned account manager and support team make implementation simple, and they handle administration, too. Plus, there are no changes required to your company’s retirement plan benefits.
How the Program Works
Employee Makes Their Election
The employee allocates their matching dollars in one of three ways: to a traditional retirement plan, to student loan repayment, or by allocating a certain percentage toward each. After the employee determines how their matched funds will be distributed, they register their student loans (if they’ve chosen to have part or all of their matched funds to be paid toward student loans).
BenefitEd Processes the Allocated Amounts
After the employee enrolls, BenefitEd calculates the amount for payroll deduction and employer matching, ensuring elections follow the employee benefits plan. The employer withholds the deduction and applies matching funds in one lump sum. BenefitEd processes and applies payments to the employee’s student loans.
Current Matching Dollars Remain the Same
The employer’s existing retirement plan decides the total amount available for employer match. That doesn’t change with Employee Choice – there’s no increase to an employer in terms of the matched dollars allocated toward the employee’s benefits. The employee just has more choice in how to receive those matched funds.
Getting Started is Easy
Employee Elects Allocation
Company contributions mirror current retirement plans, but employees are able to make changes to their benefit election amounts. Once employees set their elections, the change takes place the following month. Employees can:
- Contribute all toward student loans.
- Contribute all toward a retirement plan.
- Contribute to both.
Easy Plan
Implementation
At BenefitEd, we do the heavy lifting so employees and employers can focus on other important tasks. As an employer, all you need to do is:
- Provide the employee eligibility file.
- Verify employee’s status and provide a lump sum payment.
BenefitEd will provide outreach and collect information from employees, distribute payments, and notify employees when to expect payments and deposits.
Reporting and
Follow-up
We make sure employers can gauge the impact of Employee Choice on employee retention – and that employees are reminded of the financial assistance they’re receiving from their employer.
- Monthly enrollment reports help you keep tabs on program activity, as well as track program impact on employee retention.
- Employees receive email confirmation of payments and/or deductions, reinforcing the value of the program.
I am an employee at Ameritas and I just paid off my student loan. I just want to say THANK YOU! Without this benefit, through BenefitEd, I would have been paying on my student loan for at least another 3 years. To have my student loan paid off, is an incredible weight off my shoulders and I can't express how much I truly appreciate this benefit that you have given me. So this comment is nothing other than to just say thank you!
Frequently Asked Questions
We make it easy to find answers to your questions about creating and implementing your employee benefits programs. Here are common questions we encounter.
Featured Resources
In our Resource Center, you’ll find useful articles, videos, case studies, whitepapers, and more. These resources provide information on how to achieve your business objectives by effectively using education benefits to attract and engage employees.